Nomura boosts conviction on USD/JPY brief after Powell’s dovish tone, eyes 142 by Octover

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Nomura’s International Markets Analysis workforce stated Fed Chair Jerome Powell’s dovish tone final Friday opens the door for additional draw back within the greenback towards the yen. Powell’s remarks have raised the chance of a September price minimize, reinforcing the view that USD is prone to stay underneath stress within the close to time period.

“We now have the next conviction on our brief USD/JPY commerce,” the workforce wrote, reiterating a goal of 142.00 by end-October. Nomura added that investor consideration will even be on upcoming feedback from Financial institution of Japan officers — together with coverage board member Junko Nakagawa, who’s talking on Thursday this week (Japan time) — for alerts on whether or not the BOJ might carry charges earlier than year-end, which might add to yen energy.

This text was written by Aaron Cutchburt at investinglive.com.

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